In Europe, another Central Bank has joined the ranks of regulators with a keen interest in the cryptocurrency industry.
The report of the Bank of the Netherlands says that the regulator allows its participation in the development and testing of the digital euro. Earlier, the Bank of France made a similar statement, which also proposes to introduce a regulated digital currency (CBDC) in the eurozone.
The Dutch Central Bank believes that using a single token in Europe, it will be possible to make cross-border payments according to a simplified scheme.
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Moreover, transaction costs in the implementation of such transfers will be significantly lower. The Netherlands could be an excellent “testing ground” for the digital euro, the Central Bank said in a report.
The authors of the report also draw attention to the reduction in the use of cash. At the moment, almost 60% of payments in the country are made in non-cash form. Analysts also pointed to the risks associated with the spread of so-called private cryptocurrencies. First of all, this concerns the Libra project, initiated by Facebook. The Libra cryptocurrency can pose a threat to the European financial sector, so you need to provide an alternative for people in the form of a digital euro.